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A Report On “FUTURE AND MARKETING OF A FIVE STAR HOTEL” For THE PARK Submitted to Amity University In partial fulfillment of the Master of Business Administration Under the guidance of Mrs. Anitha Ajith By CHANDAN GOVIND Reg No: A31101910034 Batch: 2010-2012 AMITY GLOBAL BUSINESS SCHOOL

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A Report On FUTURE AND MARKETING OF A FIVE STAR HOTELForTHE PARKSubmitted toAmity UniversityIn partial fulfillment of the Master of Business AdministrationUnder the guidance of Mrs. Anitha AjithByCHANDAN GOVINDReg No: A31101910034Batch: 2010-2012

AMITY GLOBAL BUSINESS SCHOOLRAJAJI ROAD, KOCHI-35

AMITY GLOBAL BUSINESS SCHOOL,KOCHI

CERTIFICATE

This is to certify that the project entitled FUTURE AND MARKETING OF A FIVE STAR HOTEL has been successfully carried out by Mr. CHANDAN GOVIND in partial fulfillment of Master of Business Administration under my guidance during the academic year 2010-2012.

Date: Mrs. ANITHA AJITH (Internal guide)

AMITY GLOBAL BUSINESS SCHOOL KOCHI

CERTIFICATE

This is to certify that the project entitled FUTURE AND MARKETING OF A FIVE STAR HOTEL has been successfully carried out by Mr. CHANDAN GOVIND in partial fulfillment of Master of Business Administration under my guidance during the academic year 2010-2012.

Date: Mr. Biju Vithayathil (Dean)

DECLARATION

I, CHANDAN GOVIND, MBA student of Amity Global Business School, Kochi do hereby declare that this report titled FUTURE AND MARKETING OF A FIVE STAR HOTEL is a bonafide work done by me under the supervision of Ms. Shama Kulkarne, Training head of THE PARK Bangalore and is submitted to Amity Global Business School. I also declare that this study report is a part of my MBA curriculum and I have not submitted this report partially or fully for the award of any degree or diploma.

CHANDAN GOVIND

ACKNOWLEDGEMENT

I would like to express my profound gratitude to our Dean Prof. BIJU VITHAYATHIL for all his support and constant encouragement extended by him.

I would also like to thank my internal guide Mrs. Anitha Ajith for rendering me the whole hearted and proper guidance and also for providing me with all the facilities and amenities that helped me to complete this project successfully in time.

I express my sincere gratitude to my company guide, Ms. Shama Kulkarnee, Training in charge, Banglore for providing me all guide lines and inputs that were essential for successful carry out of the project work in THE PARK. I place on record my sincere thanks to all the other company staff that have in some way contributed to the completion of the project in time. I thank all respondents who helped me by giving me their valuable feed backs for the completion of the project.

Above all I sincerely thank The God Almighty and my affectionate parents without whose blessings I could not have completed this work.

CHANDAN GOVIND

CONTENTS

CHAPTER NAME PAGE 8.0 Bibliography 69 7.0 Conclusion 67 6.0 Results and suggestions 65 5.0 Data Analysis and Interpretation 43 4.0 Company Profile 31 3.0 Industry Profile 8 2.0 Research Methodology 5 1.0 Introduction of the project 2

Executive summary

This project aims to find out the future and marketing of 5 star hotels. The background talks about various factors that have led us to undertake this study and how and to whom this report will benefit. Objectives talks of types of data the research project will generate and how these data is relevant. A statement of value of information is also included in this section. Research approach gives a non technical description of the data collection method, measurement instrument, sample and analytical techniques.

First ever-contemporary boutique hotel in India, The Park Bangalore exudes luxury and sophistication. The stylishly designed hotel that made its way to the Tatlers magazine list of best 101 hotels in the world, promises a rich experience to any visitor and patron. Realizing the huge potential for hospitality industry have to look back to their marketing strategies. The positive response of the customers towards the hotel led The Park to new marketing strategies.

Chapter- 1INTRODUCTION OF THE PROJECT

1.0 INTRODUCTIONThe park is the first ever-contemporary boutique hotel in India. The hotel draws on Indian sensations and environment to provide travelers an urban retreat.

Under my project report, I have studied various trends that comes in the way of Hospitality industry. I have tried to give a solution to Marketing complexities. I also find out that what would be the future of Hospitality industry. Regarding future, I have found out that hospitality industry is in a booming stage. And I also tried to find out the challenges in the hotel industry.

1.2 OBJECTIVES OF THE PROJECT To study the various trends in Hotel Industry. To find the future market potential of Hotels. To find out the Challenges of Hotel Industry. To know the Brand awareness of The PARK among the customers

1.3 LIMITATIONS OF THE STUDYNo study is complete in itself, however good it may be and every study has some limitations: Time is the main constraint of my study. Sample size availability was not large enough

Chapter-2RESEARCH METHODOLOGY

2.0 RESEARCH METHODOLOGYResearch is a procedure of logical and systematic application of the fundamentals of science to the general and overall questions of a study and scientific technique which provide precise tolls, specific procedures and technical information, rather than philosophical means for getting and ordering the data prior to their logical analysis and manipulation.

2.1 DATA COLLECTION TECHNIQUESThe sources of data includes primary and secondary data sources. 2.1.1 Primary Sources: Primary data is collected by survey. 2.1.2 Secondary Sources: The secondary data is data, which is collected and compiled from different sources and are used in research for this study. The secondary data include material collected from: Newspaper Magazine Internet

2.6 Data collection instrumentsThe various method of data gathering involves the use of appropriate recording forms. These are called 'tools' or 'instruments of data collection. Collection Instruments Questionnaire Observation

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Chapter-3INDUSTRY PROFILE

INDIAN TOURISM INDUSTRY

Tourism is the basic and the most desirable human activity describing the praise and encouragement of all people and government. Hotel industry is an essential part of tourism. The expansion of tourism is well inevitable bringing out development of the hotel industry. Hotel industry is so closely linked with the tourism industry that it is responsible for about 50% of the foreign exchange earning form tourism trade and enterprises. The rising volume of tourism influx brought into light, the shortage of hotels in important tourists centers. Keeping in view the changing standards in the international hotel keeping. The Indian industry to make a number of improvements. Its not enough to have adequate hotel accommodations, it is equally necessary to have at various levels, low priced, moderately priced, high priced, and a few luxury hotels.

Hotels may be categorized depending upon factors such as

Locations Categorization according to plan Categorization according to number of rooms. Categorization by type of clientele. Categorization by the length of stay of guests. Categorization by the facilities that the hotel offers

The devaluation of the Asian currencies, the Kargil issue and the parliamentary elections had affected growth in the tourism industry. The situation is gradually moving back to normal with the tourist arrival figure marginally increasing from 2.3mn in 1997 to 2.5mn in FYOO. The industry is growing at a rate of 9%. With the political and economic stability being more clearly visible, both tourists as well as business arrivals are likely to gather momentum in the remaining part of the year. The Indian hotel business focuses largely on foreign tourists with only 30% of the business coming from the domestic business and the leisure travels. The tourist arrivals in India are seasonal in nature, with the best season being from September to December followed by a steep fall till May. The period June to September gains momentum once the monsoons are over. The slack season is generally used for renovation work and the period is characterized by discounts to attract clients. The studies says, "tourism is a traditional instrument, which enables culture to the rehabilitated and made know to the rest of the world". It is said it's a smokeless industry and has become second to the petroleum industry in world trade. This great importance was formally acknowledged when the XXIU.N General assembly designated 1967 as international tourist year with a unanimous resolution recognizing that "tourism is a basic and most desirable activity deserving the praise and encouragement of all peoples of government". When traveling away from home, tourist comes in contact with the places they visit with their inhabitants and social exchange takes place. Their presence and social background affect the social structure and mode of life at the destination. Tourists are in turn affected by the experience and and often carry back home with them, new habits and new outlook on life. Tourist has great educational significance. Contact between people of different races and nationalities widen ones outlook. Tourism, whether domestic or international has common economies significance in the sense that money earned in places visited large sums of transferred to the host economies where this money provided a source of income, a means of livelihood and amenities for the resident population. Purchasing power is generated in the receiving areas through the expenditure of visitors. Money received is spent and resent and this multiplier process the host country is a beneficiary. International tourism is of great importance in international trade in the sense that it enters into the balance of payments of accounts of individual countries generating tourist traffic and export for countries receiving tourist traffic. For many countries is a major item in world trade. These countries exhibit faster growth in tourism than in trade of goods. Domestic and International Tourism Usually, a distention is drawn between domestic or internal and foreign of international tourism. In domestic tourism people travel outside their normal domicile to other areas within the country. Barriers like language, currency and documentation are not in the domestic tourism. But in India, since difference estates have different languages, ones own language may not serve a medium of communication. Domestic tourism has no balance of payment implications. When people travel to a country other that which they normally live in is known as international tourism, the distinction between domestic and international tourism is now diminishing. The reasons being: Language barriers are reduced by improving language skills Currency and customs unions are developing in many European countries. With globalization the free movement of people is growing.

Considering the greater multiplier effect in domestic tourism, domestic tourism would have received greater emphasis in India. Reliable data on the growth of domestic tourists traffic are not available as not extensive survey has been conducted on a national level by any agency, governmentor otherwise not given the numerous festivals celebrated throughout out the year, the innumerable tourist's centers in the country, the geographical expands and the resource constraints, estimates of documents tourists' traffic through an executive survey is considered impossible. Domestic tourism if considered separate from the travel for religious and commercial purpose. It is a post-independence phenomenon. Industrial growth, improvement in the standard of living, rise in disposable income and most importantly the improvement of tourist infrastructure search as hotels, air, train and road transport has contributed to the impressive growth in tourist traffic. The definition of a domestic tourist is a person who travels within the country to a place of residence and stays at hotels or other accommodations establishments run on commercial basis or in dharmashalas, sarais, chaultries etc. for duration of not less than 24 hours. The factors that govern the magnitude of domestic tourist traffic are the religious and cultural importance of a place. The extent of manufacturing, business and trading activity, the climatic conditions, the infrastructure facilities available and the geographical location etc. the current rough estimate of domestic tourism in India is ten million a year.

Tourism Planning in India The outlay for tourism development was Rs.8 crore in the third plan Rs.186.46 crores in the sixth plan and Rs.326.16 crores in the seventh plan. It was during the sixth plan that a tourism policy was formulated and presented before the parliament. The sixth plan is an objective envisages optimum use of infrastructure, regionalizing tourist traffic and increase in accommodation and so on. However, the plan turned out to be a very mere blue print for action for tourist development. The seventh plan (1985-1990) set a target of 1.5-million tourist arrival by 1990 and 3 million by 2000 AD. It also recommended according industry status to tourism in order to encourage private sector investment in tourism.

It was also recommended that public sector would focus on basic infrastructure development, and the private sector would be in encouraged to develop tourism. For the first time domestic tourism was sought to be encouraged for promoting social and cultural cohesion and employment generation. The national committee on tourism presented a comprehensive report in 1988,which provided the basis of a long-term perspective plan for tourism in the country. The committee set a growth rate of 7% per annual for international tourists. Arrivals by 2000 AD. Recommendations also included the following:

1. Set a tourism finance cooperation to extend financial assistance for tourism project. 2. Developments of select tourist destination and circuits diversification of tourism arrival of cultural destination to the leisure and holiday tourist3. Markets, exploration and development of new tourism generating center. 4.Increase the hotel accommodation by cent percent by stimulation investment through appropriate package of incentives. The committees major recommendation expects that of setting up a national tourism board wherein accepted. In April 1989, the tourism finance cooperation of India was set up. A working group of the state tourism secretaries in July 1985 identify incentives for the industry. About 14 states and 3 union territories have declared tourism as an industry however, despite the efforts during the seventh plan for diversification of tourists for cultural destinations to the leisure and holiday destination, India still remains as a cultural destination. Budget outlays where diverted towards facilitating trekking development of beach resorts, building shopping plazas, wildlife tourism, facilities for conference is skiing etc. It is reported that the profile of the average overseas and domestic traveler is changing. In the current plan period as well one of the principal thrust areas would be modification of the Indian tourism product by adding the concept of India. As an adventure and leisure tourism destination to the present cultural tag. Trekking, winter and water sports wild life and health tourism will remain as the major thrust areas in the forth-coming area.

INTRODUCTION TO THE HOTEL INDUSTRY According to the British laws a hotel is a place where a bonafied traveler can receive food and shelter provided he is in a position to for it and is in a fit condition to receive. Hotels have a very long history, but not as we know today, way back in the 6th century BC when the first inn in and around the city of London began to develop. The first catered to travelers and provided them with a mere roof to stay under. This condition of the inns prevailed for a long time, until the industrial revolution in England, which brought about new ideas and progress in the business at inn keeping. The invention of the steam engine made traveling even more prominent. Which had to more and more people traveling not only for business but also for leisure reasons. This lead to the actual development of the hotel industry as we know it today. Hotel today not only cater to the basic needs of the guest like food and shelter provide much more than that, like personalized services etc. Hotels today are a Home away from home.

CLASSIFICATION OF HOTEL Hotel can be classified into different categories or classes, based on their operational criteria. For example the type of accommodation they provide, location of the property, type of services provided, facilities given and the clientele they cater to can help categories hotels today. Hotels today are basically classified into the following categories:

1 Market segment: Economy / limited services hotelMid market hotelAll suite hotelsTime-share hotelsCondotel / CondiminiumExecutive hotelsLuxury / Deluxe hotels

Property type: Traditional hotelMotelsBread and break fast innsCommercial hotelChain hotelCasino hotelBoutique hotelsResorts Spas Conference resorts

2 According to size: Small hotels [150 rooms]Medium hotels [up to 299rooms]Large hotels [up to 600rooms]

Other classification can be based on: a) Market segment b) Property type c) Size d) Level of services e) Owner ship and application f) Plans g) Type of patronageh) Length of guest stayi) Location etcMARKET SEGMENT

Economy hotel: It provides efficient sanity private rooms with bath. The furnishing and decor are acceptable to majority of travelers. Food and beverage service may or may not be available.

Mid market hotels: They offer comfortable accommodation with private on premises bath. Food and beverage services and uniformed bell staff. They offer above average luxury.

All Suite hotels: It offers separate sleeping and living areas along with a kitchenette and a stocked bar, and offer class service.

First class hotels: They are luxury hotels with exceptional decor better than average food and beverage service, uniformed bell services. They often have 2 or 3 dining rooms, swimming pool, spas etc.

Deluxe hotels:They are better and offer more specialized services than first class hotels. They also provide limousine services.

PROPERTY TYPE

Traditional hotels: They have the basic concept of rooms with break fast, bell desk services and the other usual services.

Motels: They are located on highways. Guest is given parking right outside their rooms. The usually have a gas station / workshop attached to them.Resorts: They are usually situated in tourist locations like on rivers, mountains, jungles, or the sea. They give more privilege to sports activities leisure and re-creation activities like manages, sightseeing, adventure sports, etc.

Resident hotels: Where guest stay for longer duration, stay like weeks, months even years.

Casino hotelsThey are hotels usually in tourist spots and mainly cater to people who are on holidays. Casino hotels like the name suggest offer gambling facilities along with accommodations.

SIZE

Small hotel up to 150 roomsMedium hotels 150 to 299 roomsLarge hotels 299 to 600 roomsExtra large hotels above 600 rooms

LEVEL OF SERVICES:

World-class services: They target top business executives and provide service s that cater to needs of such people like lap tops in the rooms, business center, sectarian services.

Mid range services: They appeal to the larger segment of traveling public [tourist]. The services provided by the hotel are moderate and sufficient to budgeted travelers.

Economy / Limited services hotel: They provide comfortable and inexpensive rooms and meet the basic requirement of the guest. These hotels may be large of small in size depending on the kind of business they get. The key factor behind the survival of these hotels is that they are priced very low and are in the budget of most of the travelers.

OWNERSHIP AND AFFILIATION:

Independent hotels: They have no application with other properties. They have their own management and are single properties with one owner.

Chain hotels: They impose certain minimum standards, levels of service, policies and procedures to be followed by their entire establishment. Chain hotels usually have corporate offices that monitor all their properties and one management runs these properties. That is all the hotels under the chain are completely owned and run by the chain itself.

Franchisee hotels: The franchisee grants the entities, the right to conduct business provided they follow the established pattern of the franchisee, maintains their standards, levels of service, practice their policies and procedures.

AWARDING OF CLASS:Awarding of class is done by the HRACC in India. These are a few things listed down that are taken into consideration while awarding star category to any hotels.Number and types of rooms the hotel has a vital role in this. The factors which effects this are as follows.Elegant and comfortable surroundingsRooms efficiencyCleanness and sanitationStaff size and specializationRange and level of servicesNumber of RestaurantsBars and Beverage servicesConcierge servicesAccessibility to entertainmentAvailability of transportationSpa and swimming pool facilityReservation and referral services.

Star category of hotels [India]

One star [*] Two star [**] Three star [***] Four star [****] Five star [*****] Five star deluxe [***** deluxe]

THREE STAR CATEGORIES:

For a hotel to be recognized as a three star property the architectural features and general features of the building should be very good there should be adequate parking facilities. At least 50% of the rooms must be air-conditioned. Also the ambience and decor of the place must be ecstatic.

They should provide reservation and information facility apart from reception, information, bell service at least two gourmet dining facility should be available. The establishment may or may not have banqueting facility. They should provide high levels of personalized services. The staff must be well-trained and proper standards for hygiene and sanitation must be followed. Also all properties have to keep in mind that proper waste management is done

FIVE STAR CATEGORIES:

Five star category is only allotted to properties, which have all the qualities of a three star property and a few additional. Like the entire property must be centrally air- conditioned. The building of the property must be an attractive one. All the rooms must be spacious. The property must have proper banqueting facility, business center. Proper and well-maintained pool and health club a spa is optional. The property must have 24 hour coffee shop, round the clock room service, a bar, and a minimum of 1 gourmet restaurant. The staff must be highly trained and a degree of specialization must be shown. State of art Equipments must be used and the facility provided in the rooms must be sophisticated.

FIVE STAR DELUXE CATEGORIES:

They are more or less like five star properties with the only difference is that they are on a larger scale. Five star deluxe properties maintain a very high staff to guest ratio and very high levels of service is maintained. They in addition to five star properties have 5 to 7 dining rooms, a bar, 24-hour coffee shop, banqueting facility. Spas, fitness centers, business centers etc

PROFILE OF THE CITY

Bangalore is situated in the Deccan plateau region and in the foothills of the mighty Western Ghats. At a sea level of 3000 feet, Bangalore enjoys the most pleasant climate in southern India. The city being the capital of Karnataka and also known as the IT capital of India has developed in to a commercial hub today. Earlier it was only known as a British cantonment. The city was founded in 1537, and it grew importance under the great rulers of the then Mysore state and later on as a British cantonment centered on trade and commerce. Bangalore is apathy called the Garden city of India and is full of beautiful parka lakes and gardens both in and around the city. This is one city with a cultural blend of people from various parts of the country of different races, colors and culture living here. Kannada is the mother tong of the people living here, but other than Kannada; the people living here also speak Hindi and English very fluently. The places of tourist interest in Bangalore would include

LOCATION GEOGRAPHY

Rainfall Bangalore receives the benefit of the Southwest and Northeast monsoons. The average annual rainfall is 87 centimeters. October and November are rainy months but the downpour during these months is only about 17 cms. December to March is practically dry.

Population The increase in population of Bangalore is very rapid since 1955. From 10 1akhs in 1955, it went upto 20 1akhs in 1970 and it is estimated to have crossed 551 lakhs today.

City Administration The administration of the city vests with the corporation of the city of Bangalore, which was constituted under the city of Bangalore Corporation Act LXIX of 1949

Languages Spoken The main languages spoken are Kannada 31 %, Tamil 27%, Telugu 17%, Hindustani/Urdu 15%, and other languages 10%.

Electricity Supply of electricity for industrial use is made at 400 Volts, 50 cycles, phase (4 wire system), while of domestic use it is supplied at 230 volts, 50 cycles, single phase.

Industries Bangalore had made rapid progress in industrial development. There are many large, medium and small-scale industrial concerns in and around Bangalore. Producing a variety of items. The number of electronic equipment manufacturing units has gone up. Singapore Information Technology Investments Private Ltd., Tata Industries and Karnataka Industrial Areas Development Board are jointly developing the Information Technology Park at Whitefield, 16 Km from Bangalore. The Park provides office space and residential apartments. Garments manufacture is another important industry developing in Bangalore. The industrial growth in and around Bangalore has naturally catalyzed the commercial activity.

Transport The Bangalore Transport Service buses and a limited number of 'Pushpak' special buses play on different routes intersecting the city. Suburban bus service connects the city with a number of villages and towns situated at short distances from the city. Karnataka State Road Transport Corporation (KSRTC) bus service connects many towns within and outside the state. A good number of private buses operate form kalasipalyam Bus Stand near the City Market and also from Dhavantry Road (Tank Bund Road) near the Bangalore Bus Station. The Karnataka State Tourism Development Corporation, 10/4, Kasturba Road, Bangalore-l, (Phone 2212901) conducts tours to places of interest in Karnataka. Several authorized travel agencies also arrange conducted tours and Bangalore sightseeing trips. Taxies and auto rickshaw are available for quick and easy transport within the city.

Milk Supply Milk supply in Bangalore supplemented by the Bangalore Diary, situated on the Hosur Road, through retail selling agencies and automatic milk vending machines installed in most parts of the city. The Federation of Bangalore City and Rural Districts Co-operative Milk Producers Union manage it.

Cultural Activities Bangalore is an important center for cultural, religious and social activities. Some institutions periodical exhibitions, recitals, drama, music and dance performances, lectures, symposia, and group discussions that entertain and educate. Some of the daily programs appear 'In the City To-day' in Deccan herald, Indian Express, The Hindu, The Times of India and some Kannada dailies. Every Friday evenings (6:30 p.m.) cultural programs are arranged 'Yuvanika' State Youth Center Nrupathunga Road, Bangalore

The Cubbon Park: Cubbon Park is spread over 300 Acers of lush green land and is completely wooded. It is a ideal place for an early morning stroll. One can also find an aquarium, museum and a art gallery within the premises of the Cubbon park. And not to mention the library there. The best part about the Cubbon Park is that it is situated in the business hub of the city just off the Mahatma Gandhi road (MG Road).

The Lal Bagh: Lal Bagh was built over 200 years ago by Tipu Sultan and his father over 240 Acers of land and has a variety of flora growing there, brought from all over the world. Lal Bagh is also known as the botanical gardens. The Lal Bagh rock formation is one of the oldest in the world, dating back to 3000 million years. It also has a glass house built in 1898 that was recently renovated; the glass house is inspired by the crystal palace in London and is the venue for the annual flower show.

The Ulsoor Lake: The lake starts where Cubbon Park ends and is a striking beauty with shades of islands. It is also used by the Indian army crops for their water, exercises in the early mornings and late nights. But one can always enjoy a pleasant evening walking around the lake or go boating in it.

The Vidhana Soudha: The Vidhana Soudha was built in 1956 and is a neo Dravidian granite building, and is the office of the chief minister ok Karnataka and is the largest secretariat in India. It is an ideal place for late evening walk.

The Bangalore palace The Bangalore palace grounds are spread over 300 acres of land. The palace is inspired by the Windsors castle in England, and is built in true fashion. The palace was built in 1878 by the Wodeyar kings. Within the premises of the place is a 16th century temple that is very well known for its wooden carvings and beautiful paintings on its walls. Today the palace grounds are home to horse riding clubs, amusement parks, and go - karting circuits. The city is also known to hold many rock shows, like the coming of the legendary rock bands some of which have been: - Scorpions June 2001 Pink Floyd March 2002 Sir Elton john November 2002 Lucky Ali September 2003 The Rolling Stones March 2003 Bryan Adams February 2004

Bangalore is also known for its nightlife and pubs. Mg road on which the hotel is situated is one of the arterial roads of Bangalore. Along with Brigade road, Residency road, and Commercial Street, Mg road forms the most happening hub in Bangalore. The entire zone is a shoppers paradise, with its cottage and silk emporiums, shopping arcades, handicrafts, leather and antique stores, movie halls and opera house. To cater to the varied interest of customers, Mg road also offers life style stores, garments arcades, bookstores. This entire stretch is also famous for its pubs, restaurants, fast food outlets, coffee houses and churches.

GET AWAY There are quite a few one day get away around Bangalore like the Nandi hills just 60 kilometers north of the city, situated at 4850 feet above the sea level, is a small hill station and a has Bangalore only wine yard

The Bannerghatta National Park: It is just 21 kilometers away from the city. This park is a wild life museum, which is inhabited by various animals and birds. The main attraction is the lion and tiger safari.

Hogena Kal: Literally means smoking rock, its a waterfall 180 kilometers from Bangalore.

Nrityagram: 32 kilometers north from the city, Nrityagram is only dance village in India, which popularization of 7 Indian classical dances.

Chapter-4COMPANY PROFILE

PROFILE OF THE HOTEL

The Apeejay Surrendra Group: It is the diversified industrial and services conglomerate with operation in tea plantations, hotels and restaurants, shipping, real estate, constructions, and information technology.

The Apeejay group was founded in 1910, driven by dynamism and vitality along with a strong commitment to traditional values, the group continues to develop and group. The Park hotels commenced operations with the opening of Park Calcutta in 1967. Today located in Bangalore, Chennai, Kolkata, Visakhapatanam, and Delhi, the hotels have achieved global standards of product quality and service excellence over 35 yrs of industrial experience. A destination of choice per corporate and leisure travelers these hotels, due to their down town location, given easy access to key commercial and entertainment districts. Here contemporary design is embellished with tradition and trend. Our own Food and Beverage concepts create new entertainment options and intimate, personalized service which creates industry benchmark.

THE PARK HOTELS:

Indias only collection of luxury boutique hotels present in Bangalore, Delhi, kolkata, Chennai and Visakhapatanam, are usual design elements inspired by the city. They attend to luxurious comfort and several special touches, making the Park hotels a refreshing and natural choice for any one looking for an inspiring downtown location with easy access to key commercial and luxury destinations.

Ms Priya Paul is the chairperson of Apeejay Surrendra Park Hotels. The Park Hotels have now become members of Design Hotels Inc. Design Hotels distinguish themselves through innovative interior design and architecture uncomplicated services and sense for creative details. There are around 100 properties in 36 countries that belong to the design Hotels. The Park Hotels are the only Hotels to enjoy this association in India. The design Hotels marketing service GmbH was founded in 1993 in Ausburg, Germany

Operational Aspects Of The Park Hotel Situated in the heart of the city on MG road, with easy access to the main shopping, business and entertainment centers of the city. The themselves through innovative interior design and architecture uncomplicated services and sense for creative details. There are around 100 properties in 36 countries that belong to the design Hotels. The Park Hotels are the only Hotels to enjoy this association in India. The design Hotels marketing service GmbH was founded in 1993 in Ausburg, Germany

THE PARK. HOTEL

YEAR OF ESTABLISHED: 1999 TYPE OF HOTEL: 5 Star Boutique Hotels GROUP: Apeejay Surrendra Group ADDRESS: 14 / 7 MG Road Bangalore 560 001 TELEPHONE: 080 559 4666 FAX: 080 559 4667 E-MAIL: [email protected] WEB: www.theparkhotels.com TRANSPORT: Airport 6 km, (15 minutes by car) Railway station - 18 km, (25 minutes by car) ACCOMODATION: 109 Guest rooms

LOCATION: Situated in the heart of the city on MG road, with easy access to the main shopping, business and entertainment centers of the city.

Extraordinary features: 36 Deluxe rooms, 34 Deluxe rooms with Balcony, 6 Deluxe terrace rooms, 8 Luxury rooms, 20 The residence rooms, 4 Terrace suite and 1Premier suite. Sit-outs in each balcony with deck chairs in each suite. The residence floor with private lounge. Temperature control lap-pool with outdoor lounging in colorful Gazebos. 24 hours room service. Library with a selection of books and magazines. Audio and video entertainment. Indoor games. Computers with high-speed connectivity. Original black and white photographs in the room, capturing the various moods of Bangalore 24 hour travel service Centrally air conditioned Multi-lingual staff at your service 24 hours a day Special tours of in and around Bangalore arranged by the Silk Box managers on request

Facility and features in every deluxe room:

In-room individual climate control. American oak wood flooring. Smart card electronic room key. In-room electronic safe. Well-stocked Minibar. Data port with high-speed internet connectivity, Voice mail 2-line speakerphone facility and cordless phone. Flat screen Sony television with full cable access. Leather director chairs. Complimentary bathrobe and slippers. Massage shower. Rain shower. Goose feather pillows and duvets. Fresh flowers. Non-smoking rooms available. Complimentary mineral water. Complimentary fruits. Complimentary newspapers and magazine.

Specialty Of The Floors: The first floor depicts a cool expanse of water signified by the base colour of aqua with a burst of the sun signified by dashes of orange. The next floor suggests a mountain landscape with the use of iris with pale lime trees providing the relief. The bright Lime of the jungle on the third floor greets you, offset with regal emperor red flowers. The fourth floor The Residence reflects elegance with saffron denoting the desert and the oasis is reflected in splashes of ultramarine blueThe luxury of the rooms using silk, leather, pure Oak wooden floors and glass a mixture of materials, modern and traditional, create a unique in-room experience. A custom-made 10 inches luxurious mattress,, soft duvet and goose down pillows framed in a modern four-poster bed, dominates the room. Many rooms have balconies with deck chairs that let one recall the relaxing moments of a beachside holiday.

Services

24 hour one touch service for all your needsCurrency exchange.Safe deposit lockers.Doctor on call.Baby sitting.Valet service.Indoor car parking.Laundry service.Banquets and meeting space.DVD/ FAX machine / Laptop on request.Secretarial service on request.(Some of these services are only available on prior requests)

DINING FACILITY:

Monsoon: The 24-hour restaurant serving selection from costal India and South East Asia. Number of covers: 64

i-talia:Critically acclaimed elegent, casual dining restaurant, servicing authentic.Italian food. Number of covers: 42

i-bar:The hip lounge bar offering a Technicolor experience, opens from 1700 hours onward. Number of covers: 94

The Residence Lounge:A 24-hour lounge situated on the fourth floor offers round the clock assisted service and serves food and beverages from the coffee shop menu.

Oak Rooms:Banquet halls with state of art audio and video equipment. Can accommodate up to 200 people for a formal gathering.

Blue Box:A private screening room, used for screening of movies and meetings. Can accommodate up to 30 people.

Aqua Zone: The health spa with a fitness center and private treatment rooms.The gym has two treadmills, a cross trainer, aerobically, multi gyms, free weights,sauna and steam rooms.

TheBox: A gift shop for contemporary and luxury designer items.

TARIFF INR USD EURO

Deluxe Room 7000 200 16Deluxe Balcony Room 8000 225 180 Deluxe Terrace Room 8250 235 188 Luxury Room 9000 250 200 The Residence 10000 300 240 Terrace Suite 14000 350 280 Premier Suit 17000 365 300Expenditure tax 10% and Luxury Tax 12%The above rate would be inclusive of buffet breakfastThe hotel has an unusual and distinctive design element, attention to luxury,comfort, intimate touches and personalized service this is what the Park brings to Bangalore the four story pristine white structure with a cobbled drive way belies the luxury and flamboyance of its interiors.The hotel is a suspended fusion of vibrant colures and landscapes of Indian ethnicity and international eloquence makes the Park a unique 109-room boutique hotel in India. The Park symbolizes style, eloquence and grandeur. The designs that adore the hotel are the creations of Conran and Partners, UK. The Park Bangalore reflects a fusion between the rich cultural heritage of Karnataka and the fast moving IT savvy Karnataka today. Upon entering the hotel one would find extensive use of silk and wood the carving in the lobby is inspired by the HOYSALA art of Karnataka. The lobby of the hotel is linked to rest of the ground floor of the hotel by a vista of marble clad openings. It seems like the lobby flows into the coffee shop Monsoon, the coffee shop into the library and so on. HEADS OF DEPARTMENTS AT THE PARK BANGALORE

Mr. Siraj Mukherjee General Manager Mr. Shankar Reddy Finance Mr. Soumitro Mukherjee Human Resources Manager Mr. Sudhanshu Singh Front Office Manager Mr. Kiran Kumar Associate Dir.House Keeping Chef Abhijit Saha Executive Chef Mr. Kamat Food and Beverage Manager Mrs. Preety Kumar Guest Relation Executive Mr. Himanshu Sharma Asst. Purchase Manager Mr. V. Selvem ChiefSecurity Officer Mr. Amit Sabharwal Sales & Marketing Executive Mr. Johnson Correya Audio-Visuals Manager Ms Shama KulkarneeAsst. Training Manager Mr. C. Solai Chief Engineer

Chapter- 5DATA ANALYSIS AND INTERPRETATION

FINDINGS

Data Analysis and Interpretation1. Location of the hotel

Interpretation:100% of the respondents saying that location is the main advantage of the hotel. The Park is Situated in the heart of the city on MG road, with easy access to the main shopping, business and entertainment centers of the city.

2. Excellence of staffFeedbackPercentage

Very Good80%

Good20%

Interpretation:80% of the respondents think that the hotel staffs have very good excellence. And the rest 20% saying the excellence of the staff is good.

3. Physical facilitiesFeedbackPercentage

Good26.7

Very Good73.3

Interpretation:The 73.3% of the respondents feels that the physical facilities of the hotel is very good. And the rest 26.7% feels its good

4. Safety FacilitiesFeedbackPercentage

Good33.4

Very good66.6

Interpretation:66.6% of the respondents are satisfied with the safety facilities in the hotel. The rest 33.4% feels that the safety facilities are good in the hotel.

5. Cleanness & Comfort ability of roomsFeedbackPercentage

Good80

Very Good20

Interpretation:The 80% of the respondents are satisfied with the cleanness and comfort ability of the rooms. The rest 20% feels that the cleanness and comfort ability.

6. Services of the hotelFeedbackPercentage

Good40

Very Good60

Interpretation:60% of the respondents are satisfied in the services provided by the hotel. And the rest 40% feels that the services provided by the hotel is good.

7. Value for moneyFeedbackpercentage

Not upto the mark20

Good26.7

Very good53.3

Interpretation:The 20% of the respondents are not satisfied with the value provided their money. And 53.3% are satisfied, and the rest 26.7% of the respondents feels the value given for their money is good.

8. Reference for the hotelFeedbackPercentage

News paper26.6

Magazine26.6

internet46.8

Interpretation:26.6% of the respondents come to about the hotel from news paper, other 26.6% from magazine, and the rest 46.8% from internet.

9. Accessibility of reservation systemFeedbackPercentage

Good40

Very good60

Interpretation:60% of the respondents says they are satisfied with the reservation system. And the rest 40% feels its good.

Challenges to Hotel Industry

1. Shortage of skilled employeesOne of the greatest challenges plaguing the hospitality industry is the unavailability of quality workforce in different skill levels. The hospitality industry has failed to retain good professional.

2. Retaining quality workforce:Retention of the workforce through training and development in the hotel industry is a problem and attrition levels are too high. One of the reasons for this is unattractive wage packages.Though there is boom in the service sector, most of the hotel management graduates are joining. Other sector like retail and aviation

3. Shortage of rooms:The hotel industry is facing heavy shortage of rooms. It is estimated that the current requirement is of 1, 50,000 rooms. Though the new investment plan would add 53,000 rooms by2011, the shortage will still persist.

4. Intense competition and image of India:The industry is witnessing heightened competition with the arrival of new players, new products and new systems. The competition from neighboring countries and negative perceptions about Indian tourism product constrains the growth of tourism. The image of India as a country overrun by poverty, political instability, safety concerns and diseases also harms the tourism industry.

5. Customer expectations:As India is emerging as a destination on the global travel map, expectations of customers are rising. The companies have to focus on Customer loyalty and repeat purchase.

6. Manual back-end:Though most reputed chains have IT enabled systems for property management, reservations, etc., almost all the data which actually make the company work are filled in manual logbooks or are Simply not tracked.

7. Human resource development:Some of the services required in the tourism and hotel industries are highly personalized, and no amount ofautomation can substitute for personal service providers. India is focusing more on white collar jobs than blue collar jobs. The shortage of blue collar employees will pose various threats to the industry.

PEST Analysis of hotel Industry

1. Political factors:

Govt. policy affects the business in very deep The arrival of low-cost airlines and associated prices are have been given domestic tourist a host of option Government focus a tourism industry e.g. ATHITHI DEVO BHAV opening up opportunity for the hotel industry. More over the government decision to substantially upgrade 28 Regional airport I smaller tour and privatization and expansion Delhi and Mumbai airport industry I India. In the govt of indias Incredible India destination campaign have also helped the growth of domestic and international tourism and consequently the hotel industry. Removal of number of restriction in excise on outbound charted fight including those relating to frequency and size of aircraft. The govt decision to treat convention centres as port of core infrastructure has also fuelled the demand of hotel room. For past few years the boom in Indias hospitality industry has been fuelled by favorable political situation. Investment of US $11 bn over the next 2 years is expected to be earmarked for hotel industry in India.

2. ECONOMICALIn economical effect industry has to check out that what the GDP of the industry is. The GDP of the hotel industry is contributed to 13.21% in 2007

The hotel industry in India is going through an interesting phase one of the major reason for the increasing in demand for hotel room in the country seen till recently is the beam in the overall economy and high graph in shelter like information technology. Now slowdown fear is now hovering on the sector. In India form medium to long term the fundamental are very perishing. The continued economic or with increased in test in the India market and improved international access. The leapt of global economy melt down is being felt by upcoming hotel project in India some of these venture are like to be delayed or put a hold. The hotel industry in India going though on interesting phase one of the major reasons for the increase in demand for hotel room in the country seen will recently boom in over all economy and high in sector, like information technology, telecom, retail and real estate. A flourish economy helped boost demand for the industry to encourage the tourism sector the govt is planning to propose a conditional 10 year tax holiday for tourism.

3 Socio- cultural factors:

Socio cultural factor includes two partsA) SocioB) Culture

If any industry are show towards the society than you can understand that society re developing the culture. If you understand the socio factor than you can understand tha cultural factor.

A) Socio factor:It include the demographical factor like

Population:-India is the second largest population country of the worldmore than 110 crore population is there. So because ofhigh population it is the positive effect towards the hotel industry because as population are more hotel industry get more traffic & also occupancy rate is increase at the time of marriage season.

Domination of male & female: -In India male are taking maximum decision than the female but in European country the decision is taken by the female so also it affects the hotel because if female want to go for some enjoyment in outside with her life partner & if life partner is not ready than how she go outside so it affects the hotel industry

Literacy level: -Literacy level is law in India compare to western country but literacy level is high compare to neighbor country like Srilanka, Pakistan, Bangladesh, Nepal, etc. so ifeducation level is high than students are go to study in other state & or in other country also other countrys students come to India so they have stay in hotel so it the positive effects to the hotel industry so industry have to show that what is the literacy level in country.

Income level: -Now a days the income of a people increasing day by day. if income will increase than people want more enjoyment so it is the positive affect to the hotel industry.

Average age of society: -In India there are teenagers & youngster are more than the alders pople & in America the mature people are high than the youngster so in India teenagers & youngster people want more enjoyment by going in hotel & picnic etc. so it is the positive affects to the hotel industry.

B) Cultural Factor:Culture means it is the set of Norms, value of ritural, philosophy of country is the highest important to any industry. If you are not know the culture of any country than you can not do the business in that country

C) Language:Language is also play an important role in any country. Because what ever you communicate in your language it may some different meaning in other country.

4) Technological factors:

Technological factors include following factor.

a) Status of technology:Status of technology include Advance technology Moderated technology Suitable infrastructure for technology

Hear hotel industry have to check out that what technology they are using right now whether it is advance, moderated, or outdated technology. In hotel industry they are using moderated technology.

b) Pace of technology:Pace of technology means how fast technology is changing in the country is changing in the country. In the country like America, China, Japan, India the technology is taking change at very fast rate as compare to China, Japan, & America technology the Indian is not fast growing as in that country so it is the backward point to hotel industry in India.

c) Cost of technology:Cost of technology means what is cost that acquire by adapting the technology.

Marketing Mix

Place: product and service informationare sold to the guest via personal selling, direct marketing, advertisingand the Internet. Delivery channels include travel agents and internationalreservations systems.Product MarketingProduct: high quality facilities accompanied by exemplary personal service, differentiated from competition quality with the overall brand strategy has proven to be a successful approach generating high levels of repeat business.PricingPricing strategy has been consistent with the differentiation objective, to provide added value for a reasonable rate as opposed to discounting and de valuing our products and services.Room rates quoted are net of tax and service, are per night, per room with continental breakfast included:

Tariff: (In INR) Single Room Double RoomDeluxe Room 15,000 16,000 Deluxe Balcony Room 16,000 17,000Deluxe Terrace Room17,000 18,000Luxury Room19,000 20,000The Residence20,000 21,000The Terrace Suite24,000 24,000The Premier Suite 28,000 28,000Extra Bed / third Person2,000Tax - 12% Luxury TaxRates valid till 31st August, 2011

Promotion:

Promotion: primary focus will remain on mass communication via print ads in trade publications and on the Internet. Direct mail campaigns to existing and prospective clients will increase as a cost effective means of targeted campaigning.Personal selling in the local market will remain an important element of the mix in order to continue to build long-term relationships within the local community and generatehigh levels of corporate activity.Public relations activities will continue to play an important role in the marketing mix, presenting the hotel as a supportive member of the community andparticipating in significant local events.

Advertising:

The following are the advertisement medias that used., Medias

Tv Social media Sms Hoardings and fliers Monthly mailers News Paper Magazines Campaign events Theater events Themed events at Club Celebrity performances

Marketing Strategy

Direct MarketingThe Parks direct marketing is handling by their PR agency. The park will buy select targeted list of corporate companies and send them information about Good Hotels. Website Marketing StrategyThe Parks main website marketing strategy hinges upon making sure all major travel sites such as Expedia.com, Orbitz.com, and Hotels.com list The Park hotel when customers search for hotels in our area.

Sales PlanOur sales plan hinges upon our sales strategy, sales process and, prospecting plan. As long as we follow the plans laid below we should be in good shape.

Sales StrategyRiverview Hotel's sales strategy hinges upon repeat visits by key corporate accounts. We need to develop a relationship with the companies listed in our Sales Account Plan, as well as actively generate new accounts by soliciting first time corporate visitors.It will be important to remain competitive on price, as well as amenities. The corporate accounting department wants to make sure they limit the amount of money spent per night per employee on a business trip, but the business traveler will be able to express preference. If the price is right, and the business traveler knows that they will have all amenities they need while at the Riverview Hotel, we will be assured of keeping and attracting key accounts.

SWOT Analysis of The Park:

Strengths1. A very wide variety of hotels are present in the country that can fulfill the demand of the tourists.2. There are international players in the market such as Taj and Oberoi. Thus, the needs of the international tourists travelers are seen to while they are on a visit to India.3. Manpower costs in the Indian hotel industry is one of the lowest in the world. This provides better margins for Indian hotel industry.4. India offers a readymade tourist destination with the resources it has. Thus the magnet to pull customers already exists

Weaknesses

1. The cost of land in India is high at 50% of total project cost as against 15% abroad. This acts as a major deterrent to the Indian hotel industry.2. The hotel industry in India is heavily staffed. This can be gauged from the facts that while Indian hotel companies have a staff to room ratio of 3:1, this ratio is 1:1 for international hotel companies.3. High tax structure in the industry makes the industry worse off than its international equivalent. In India the expenditure tax, luxury tax and sales tax inflate the hotel bill by over 30%. Effective tax in the South East Asian countries works out to only 4-5%.4. Only 58,000 hotel rooms are available in India today, which is less than the Bangkok hotel capacity.5. The services currently offered by the hotels in India are only limited value added services. It is not comparable to the existing world standards.

Opportunities\

1. Demand between the national and the inbound tourists can be easily managed due to difference in the period of holidays. For international tourists the peak season for arrival is between September to March when the climatic conditions are suitable where as the national tourist waits for school holidays, generally the summer months.2. In the long-term the hotel industry in India has latent potential for growth. This is because India is an ideal destination for tourists as it is the only country with the most diverse topography. For India, the inbound tourists are a mere 0.4% of the global figures. This number is expected to increase at a phenomenal rate thus pushing up the demand for the hotel industry.

Threats

1. Guesthouses replace the hotels. This is a growing trend in the west and is now catching up in India also, thus diverting the hotel traffic.2. Political turbulence in the area reduces tourist traffic and thus thee business of the hotels. In India examples of the same are Insurgency in Jammu Kashmir and the Kargil war.3. Changing trends in the west demand similar changes in India, which here are difficult to implement due to high project costs.4. The economic conditions of a country have a direct impact on the earnings in hotel industry. We can see that the present economic slowdown in India has let to a 51.6% fall in the industry average net profits for the second quarter of the current financial year, 2000.

Chapter -6RESULTS AND SUGGESTIONS

Results1. The hotel industry is in boom.2. The location of the hotel is the main advantage for the hotel.3. The customer survey says that most of the customers are happy.4. There must be an innovation in marketing strategy.5. Effective marketing can raise the business of the hotel.6. Event conducting (fashion shows, DJ, Stage performance) have an important role in profit generation.

Suggestions1. Prices should be rescheduled2. Direct marketing must be more efficient.3. Marketing strategy should be revised.4. Tour Packages should be introduced.

Chapter -7CONCLUSION

CONCLUSION

On the basis of overall study on Hotel Industry it s found out that the hotel, hospitality industry is in a booming stage. The income generated by India from tourism is growing. I was really surprised to see during my study that the hotel industry is really growing even if it has some challenges like any other industry.The hotel can more concentrate on direct marketing and web marketing. It will surely help to increase the business of the hotel. And it should concentrate to give more value for the customers money as some of the customers feels that value for money is not upto the mark.

No doubt that Hotel Industry growth towards the progress of economy is positive. But the challenges confronting the industry segment are giving it a low customer base. these problems could be overcome easily by revising marketing strategies and also there should be effective direct marketing

Chapter 8BIBLIOGRAPHY

BIBLIOGRAPHY 1. BOOKS AND ARTICLES 2. MAGAZINES 3. INTERNET SITEShttp://www.mplans.com

www.quickmba.com

www.mplans.com

www.thepark.com

SAMPLE QUESTIONNAIREDear Respondent,I am CHANDAN GOVIND, student of MBA 2nd year in Amity Global Business School. I am working on the project " FUTURE AND MARKETING OF STAR HOTEL with THE PARK, Banglore. You are requested to fill in the questionnaire to enable me to undertake the study on the said project.NAME:ADDRESS:OCCUPATION:PHONE NO.:

1) How do you rate the location of the hotel?a) Not upto the markb) Averagec) Good d) Very Good2) How do you rate the Excellence of the staff ?a) Not upto the markb) Averagec) Good d) Very Good

3) How do you rate the physical facilities in the hotel (eg. Building, signs, furnishing of room, lighting, etc.) ?a) Not upto the mark b) Average c) Good d) Very Good

4) How do you rate the safety facilities in the hotel?a) Not upto the markb) Averagec) Good d) Very good

5) how do you rate the cleanness and comfort ability of rooms ?a) Not upto the mark b) Average c) good d) Very good

6) How do you rate the services of the hotel? a) Not upto the markb) Average c) Good d) Very good

7) How do you rate the value for money in hotel?a) Not upto the mark b) Averagec) Good d) Very good

8) How do you come to know about this hotel? a) News paper b) Magazinec) Internet d) television

9) How do you rate the accessibility of reservation system?a) Not upto the mark b) Averagec) Good d) Very good

10) What suggestions do you want to make?